Office
Financial Aid -->Loans
There are several different types of loans that students may be eligible to receive.
It is important to remember that these are loans and must be repaid once you have
left school.
Students can keep track of their loans by
accessing the National Student Loan Data System (NSLDS) at
www.nslds.ed.gov.
The NSLDS is the U.S. Department of Education's central database for
student financial aid records. The NSLDS Student Access Web
site lets student and parent borrowers track and manage their
federal student loans online. The secured site displays
information on your loans, including amounts, outstanding balances
and status.
William D. Ford Federal Direct Loan Program:
The William D. Ford Federal Direct Loan Program provides for two types of student loans: (1) Subsidized and (2) Unsubsidized.
(1)
To be eligible for a Subsidized loan you must demonstrate financial need and be enrolled
at least half-time (6 or more credits). The Federal government currently pays the interest
on the Subsidized loan until you are required to begin repayment six months after you
graduate or drop below half-time enrollment. The fixed rate for the
Subsidized loan during the 2010-2011 academic year is 4.5%. Subsidized loan repayment may be
consolidated with Perkins and Nursing loans.
(2)
You do not have to demonstrate financial need to receive an Unsubsidized loan, but
you must complete the FAFSA and be enrolled at least halftime. The Federal government will
not pay the interest on an unsubsidized loan, and interest will be charged until the loan
is fully repaid. The fixed rate for the Unsubsidized loan during the
2010-2011 academic year is 6.8%. You do, however, have the option of capitalizing the
interest and not paying anything until six months after you graduate or drop below
half-time enrollment. If you choose this option, the interest will be added to the
principal balance for your loan.
Students may borrow up to the listed amounts but cannot exceed their Cost of Education.
You will be required to sign a Master Promissory Note at
www.studentloans.gov after the Award Letter is returned to the
Financial Aid Office. Your loan will be disbursed in two disbursements, regardless of your
loan period. First time borrowers and borrowers who are graduating in
the current year must complete a Debt Management Session (Entrance or Exit
Counseling) before checks can be disbursed.
Federal Perkins Loan:
The Federal Perkins Loan is awarded to students who demonstrate exceptional financial
need. The awards may vary depending on availability of funding and your demonstrated
financial need. This is a loan that must be repaid, but the interest rate is only 5
percent and students are allowed a 9-month grace period before they must begin repayment.
The minimum monthly payment is $40 and repayment is made to LCSC through the University
Accounting Services. Repayment of this loan may be consolidated with the
FFELP, Nursing
and Stafford loans. A promissory note must be signed in the Controller’s Office.
Federal Nursing Student Loan
(BSN):
The Federal Nursing Student Loan is awarded to students who have been accepted into the
Nursing program at LCSC. The award values may vary depending on the availability of
funding and your demonstrated financial need. The interest rate is 5 percent and a 9-month
grace period is allowed before repayment begins. The minimum monthly payment is $40 and
repayment is made to LCSC through the University Accounting Services. This loan may be
consolidated with the FFELP, Stafford and Perkins loans. A promissory note must be signed
in the Controller’s Office.
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